In this article, we will take a look at the 20 Stocks with the Lowest Forward PE Ratio.
Stocks fell on January 30 as the technology sector remained weak, despite President Donald Trump’s appointment of Kevin Warsh to lead the Federal Reserve. Meanwhile, the US dollar gained, and US Treasury yields remained stable, indicating that markets were pleased with Trump’s choice.
Some market investors regard Warsh as a relatively safe choice, citing his Fed expertise and reputation as an inflation watchdog or advocate of monetary tightening. That said, such a position might make him increasingly opposed to the administration’s calls to lower interest rates. Speaking on Warsh’s nomination, Richard Saperstein, chief investment officer of Treasury Partners, said the following:
“Kevin Warsh’s nomination for Fed Chair is exactly what markets were hoping for, as he’s a steady hand, well known in market circles and is expected to maintain the independence of the central bank, which is critical for markets.”
Despite the downturn on January 30, the major averages posted a solid month. The S&P 500 and Dow recorded January gains of 1.4% and 1.7%, respectively, while the Nasdaq rose 1%.
Our Methodology
For this list, we compiled a list of U.S.-listed stocks with a forward P/E ratio of less than 15. In addition, we ranked these stocks based on the number of hedge funds invested in each of them as of Q3 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
20. Matador Resources Company (NYSE:MTDR)
Forward P/E Ratio: 10.37
Number of Hedge Fund Holders: 32
Matador Resources Company (NYSE:MTDR) ranks among the stocks with the lowest forward PE ratios. On January 21, Benchmark retained its Buy rating on Matador Resources Company (NYSE:MTDR) with a $62 price target, although lowering its fourth-quarter EBITDA projection. The firm cut its EBITDA outlook to $494 million from $571 million, noting weaker mark-to-market commodities and pricing disparities. On the other hand, Benchmark boosted its output and capital expenditure forecasts in response to faster cycle times that surpassed the upper limit of projections.
As Five Point, a private equity partner, chooses to hold onto a 49% ownership in Matador Resources Company (NYSE:MTDR), Benchmark anticipates a midstream monetization this year. The net proceeds would be used to finance future expansion and lower borrowings on the San Mateo revolver.
According to Benchmark, the current setup, which assigns an upstream multiple to almost $300 million of midstream EBITDA, would be more competitive compared to a higher-multiple midstream structure.
Matador Resources Company (NYSE:MTDR) is an independent U.S. energy firm that explores, develops, produces, and acquires oil and natural gas, primarily in the Delaware Basin, Wolfcamp, and Bone Spring plays.
Hedge Fund Resource Center